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Exact(31)
In banking jargon, that is a very steep yield curve.
"Historically, steep yield curves signal recoveries," Mr. Kaufman said.
Banks, after all, gain from a steep yield curve.
Back then, we had a very steep yield curve, and then the curve started to flatten out.
In the early 1990s, after the last big crisis, it engineered a steep yield curve for years, helping banks to recover.
Surface mobility produces a steep yield stress gradient, which constrains the growth of plastic zones from surface flaws.
Similar(29)
But we have the steepest yield curve that we've had in the last 40 years, and yield curve steepness is an overly simple sense a predictor of future bank system eagerness to lend.
Small-cap financial stocks are also very interesting, because they have about four times the sensitivity to a steeper yield curve than large-cap financials.
And a steeper yield curve is a boon for banks looking to earn their way out of trouble through fat net interest margins.
A steeper yield curve provides the motivation for banks to encourage customers to borrow, and is typically associated with a strengthening economy.
Generally speaking, steeper yield curves that is, when long-term debt has a significantly higher interest rate than short-term debt are what you'd expect when an economy is getting stronger (or at least getting less weak).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com